Translation. Region: Russian Federation –
Source: KMZ Cargo – KMZ CARGO –
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Alevtina Kirillova, CEO of Eurasian Agrologistics, proposed a package of concrete measures to Russian Railways and operators: from special rates for short hauls to one-stop-shop rates, taking into account China's experience with subsidies.
To stem the outflow of freight to road transport, Russian Railways needs to collaborate with operators to create ready-to-sell end-to-end logistics products with fixed long-term rates. Alevtina Kirillova, CEO of the Eurasian Agrologistics Autonomous Non-Profit Organization, proposed this initiative at the "Transport Services Market: Interaction and Partnership" conference.
In her opinion, the development of comprehensive turnkey offers is a necessary condition for retaining clients, especially in light of the growing tariff burden: from 2024 to 2025, tariffs increased by 13.8%, and for 2026, an increase of another 18% is planned, plus a 2% increase in VAT.
The proposal is based on an analysis of the factors that determine shipper selection. Besides cost, key factors include predictability of delivery times, ease of one-stop shopping, and the ability to obtain a single rate for the entire supply chain. Rail is often inferior to road transport today in terms of flexibility, speed of shipment organization, and transparency of final terms, especially over distances of 500 to 3,000 km, where competition is most intense, noted Alevtina Kirillova.
The expert's package of specific measures for implementing this approach includes several areas. The primary focus is the development and promotion of end-to-end tariff rates across different modes of transport. To ensure competition on short haul routes, it is proposed to introduce special reduced rates for distances of up to 500 km. Digitalization and simplification of interactions are also considered critical: single-document processing, expedited procedures, and an expanded package of related services (storage, customs, insurance).
As a financial support tool, Alevtina Kirillova proposed considering dynamic subsidy mechanisms for strategic products (metals, chemicals), using the adapted experience of China, which actively subsidizes its supply chains. However, the Chinese system has its own internal contradictions and barriers that are important to consider, the expert noted. In particular, subsidies often operate within established limits, which may be exhausted by the end of the year.
Furthermore, there is a practice whereby Chinese logistics platforms transfer funding originally allocated for shipments to Russia to transit shipments to Europe via alternative routes, such as the Trans-Caspian route, which bypasses Russia. Thus, some potential subsidies, which could have benefited Russian railway infrastructure, are lost.
Despite these difficulties, the expert insists that the approach of active and flexible government participation in shaping the economics of logistics corridors holds promise. Adapting this approach, she believes, could help develop other international routes involving Russia, making rail transport more cost-competitive for key shippers, Alevtina Kirillova concluded.
As a reminder, the Association of Sea Trade Ports (ASOP) has launched an initiative to standardize the handling capacities of Russian seaports. The association believes this will help capture the growing volume of spot contracts and redirect cargo from road to rail. LR
Publication date: 12/11/2025
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